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- Cost estimating
- A predictive process used to quantify, cost, and price the resources required by the scope of an asset investment option, activity, or project. As a predictive process, estimating must address risks and uncertainties. The outputs of estimating are used primarily as inputs for budgeting, cost or value analysis, decision making in business, asset and project planning, or for project cost and schedule control processes.
As applied in the project engineering and construction industry, cost estimating is the determination of quantity and the predicting and forecasting, within a defined scope, of the costs required to construct and equip a facility. Costs are determined utilizing experience and calculating and forecasting the future cost of resources, methods, and management within a scheduled time frame. Included in these costs are assessments and an evaluation of risks.[1]
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